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Gitlab (GTLB)
NASDAQ:GTLB
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Gitlab
(NASDAQ:GTLB)
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Rating:60Neutral
Price Target:
$28.00
▲(25.84% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by improving fundamentals (strong cash flow, high gross margins, and low balance-sheet risk) and a generally solid earnings-call backdrop, partially offset by conservative FY’27 guidance and visible headwinds. Technicals are notably weak with bearish trend indicators, and valuation is constrained by ongoing GAAP losses and no dividend support.
Positive Factors
Scale / ARR
Crossing $1B ARR is a durable scale inflection that improves revenue visibility and renewal economics. It underpins enterprise GTM leverage, supports larger-account expansion and upsell motions, and creates a stable recurring base that enables predictable investment in product and sales over multiple quarters.
Free Cash Flow
Material positive operating and free cash flow converts subscription revenue into self-funded growth capacity. Durable FCF reduces financing risk, allows for sustained product and GTM reinvestment, supports the $400M buyback and provides runway for multi-quarter execution without adding leverage.
High Gross Margins
Very high gross margins reflect strong software unit economics and create long-term margin potential as SaaS penetration and enterprise mix rise. This structural advantage makes incremental revenue highly profitable and gives management flexibility to invest in growth while still improving cash conversion.
Negative Factors
GAAP Profitability / ROE
Despite cash flow, GitLab remains GAAP-loss-making with negative ROE, meaning durable shareholder value depends on converting operational improvements into sustained GAAP profitability. Prolonged losses limit capital allocation options and increase reliance on execution to deliver lasting returns.
Guidance Deceleration
Management's FY'27 guide embeds a material growth slowdown, reflecting mix shifts and removed one-time tailwinds. A multi-quarter deceleration can weaken net-new ARR momentum, compress cadence of large deals and require sustained product adoption and GTM improvements to reaccelerate growth sustainably.
Price-Sensitive Cohort & Product Ramp
A structural ~20% price-sensitive ARR cohort and ~70% self-managed footprint mean upgrades and pricing actions are slower, limiting near-term monetization. Coupled with Duo Agent Platform expected to contribute minimally in FY'27, this mix risk can restrain durable revenue and margin expansion until conversions scale.
Gitlab (GTLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.79B
Dividend YieldN/A
Average Volume (3M)6.79M
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth27.35%
EPS Growth18.18%
CountryUS
Employees2,375
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.30
Shares Outstanding153,400,000
10 Day Avg. Volume6,289,525
30 Day Avg. Volume6,792,589
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)5.85
Price to Sales (P/S)6.06
P/FCF Ratio26.12
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit4.26
Enterprise Value/Ebitda-62.00
Forecast
1Y Price Target
$35.06Price Target Upside57.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)0.82
Revenue Forecast (FY)$1.11B
Gitlab Business Overview & Revenue Model
Company DescriptionGitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. It helps organizations to plan, build, secure, and deploy software to drive business outcomes. The company also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. The company was founded in 2011 and is headquartered in San Francisco, California.
How the Company Makes MoneyGitLab generates revenue primarily through subscription services, offering a tiered pricing model that includes free, premium, and enterprise plans. The company provides both self-managed and cloud-based versions of its platform, allowing customers to choose the deployment option that best fits their needs. Key revenue streams include sales from its premium and enterprise subscriptions, which offer additional features such as advanced security, compliance, and project management capabilities. GitLab also benefits from strategic partnerships with cloud service providers and technology firms that enhance its product offerings and expand its market reach. Furthermore, the company may generate additional revenue through professional services, including consulting, training, and support tailored to help organizations adopt and optimize the use of its platform.
Gitlab Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyGitlab Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 08, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong operational and financial achievements—ARR > $1B, record net new ARR, large-account expansion, significant free cash flow growth, high retention metrics, SaaS growth, product momentum with Duo Agent Platform and a $400M buyback—alongside material near-term headwinds. Management set conservative FY'27 guidance (15%–17% revenue growth) due to ratable model mechanics, nonrecurring FY'26 tailwinds, continued pressure in a ~20% price-sensitive cohort, public sector and U.S. softness, and the expectation that Duo Agent Platform will contribute minimally to FY'27 revenue while investments compress margins. Overall the company emphasizes execution and multi-quarter investments to reaccelerate growth, but the guidance and cohort weaknesses temper the positive fundamentals.Q4-2026 Updates
Positive Updates
ARR Surpassed $1 Billion
Annual recurring revenue (ARR) exceeded $1.0 billion in FY'26, marking a major milestone and scale inflection for the business.
Strong Free Cash Flow and Margin Expansion
Adjusted free cash flow grew to $220 million (an ~83% increase year-over-year) with roughly 7 percentage points of margin expansion; FY'26 non-GAAP operating margin reached 17%, up approximately 680 basis points year-over-year.
Record Net New ARR and Large-Account Adds
FY'26 and Q4 delivered GitLab's highest absolute net new ARR year and quarter ever; the company added the most $1 million+ customers in a quarter in its history (now >155, up 26% year-over-year).
Q4 Revenue Beat and Strong Profitability
Q4 revenue was $260 million, up 23% year-over-year and ~3.5 points above guidance; Q4 non-GAAP operating income was $53.4 million with a 20.5% operating margin (5 points above guidance).
Customer Retention and Enterprise Expansion
Dollar-based net retention was 118%, gross retention stayed above 90% and churn was the lowest in four years; Ultimate now represents 56% of ARR and accounted for 9 of the top 10 deals, while the $100K+ cohort grew 18% year-over-year to 1,456 customers (~75% of ARR).
SaaS Growth and RPO Momentum
SaaS revenue grew ~38% year-over-year and now represents ~32% of total revenue; total RPO grew 20% year-over-year to $1.1 billion and current RPO grew 24% to $719.4 million.
Product and GTM Investments with Early Traction
Launched GitLab Duo Agent Platform (DAP) with a hybrid usage-based plus seat model and included trial credits; announced a landmark semiconductor customer (5,000+ users on Premium + Duo Enterprise) and customer examples (airline automating ~90% of component updates) demonstrating early product-market fit.
Balance Sheet Strength and Capital Return
Ended the quarter with approximately $1.3 billion in cash and investments and announced a $400 million share repurchase authorization by the Board, reflecting confidence in fundamentals.
Negative Updates
Conservative FY'27 Revenue Guidance
FY'27 revenue guidance of $1.099 billion to $1.118 billion implies ~15% to 17% year-over-year growth (down from FY'26's 26% growth), reflecting a meaningful deceleration embedded in the outlook.
Near-Term Margin and Mix Pressure
Full-year gross margin guidance for FY'27 is 85%–87% (down from 89% in FY'26), driven by increased SaaS/Dedicated/DAP mix and investments; management expects FY'27 non-GAAP operating margin to step down as they re-invest in GTM and DAP.
Price-Sensitive Cohort Weakness (~20% of ARR)
Management estimates roughly 20% of ARR is price-sensitive (including SMB and parts of mid-market Premium), which has slowed Premium growth and weighed on net retention and mid-market performance.
Deal Slippage and U.S. Softness
Q4 saw a few large deals slip due to customer-specific budget constraints and industry challenges, and overall U.S. performance was softer; public sector (~12% of ARR) only partially recovered following government re-opening.
Limited FY'27 Contribution from Duo Agent Platform
DAP was launched GA seven weeks prior to the call and management assumes minimal revenue contribution in FY'27 because ~70% of revenue is self-managed (requiring upgrades) and conversion from pilot to production and committed credits takes time.
Dollar-Based Net Retention Pressure Expected to Stabilize
While DBNR is currently 118%, management expects DBNR to trend down slightly before stabilizing given mid-market/SMB pressure and mix shifts; they are not guiding to DBNR explicitly.
One-Time FY'26 Tailwinds Not Embedded in Guidance
Management noted approximately 300 basis points of FY'26 growth from nonrecurring items (past Premium price increase tailwinds, favorable FX dynamics and contract clauses) that are not assumed in FY'27 guidance.
JiHu Expenses and Deconsolidation Uncertainty
Q4 non-GAAP JiHu expenses were $3.9 million (vs. $3.2 million prior year) and management modeled ~$15 million of JiHu-related expenses for FY'27 with the timing/likelihood of deconsolidation uncertain.
Company Guidance
GitLab guided Q1 FY‑27 revenue of $253–$255M (~18–19% YoY), non‑GAAP operating income of $32–$34M and non‑GAAP EPS of $0.20–$0.21 (assuming ~173M diluted shares); for FY‑27 it guided revenue of $1.099–$1.118B (~15–17% YoY), non‑GAAP operating income of $129–$137M and non‑GAAP EPS of $0.76–$0.80 (assuming ~175M diluted shares), with full‑year gross margin of 85–87% (vs. 89% in FY‑26). Management said the guide strips ~300 bps of FY‑26 nonrecurring tailwinds, assumes minimal Duo Agent Platform revenue in FY‑27, expects the price‑sensitive cohort (~20% of ARR) to remain pressured, that ~70% of revenue is self‑managed (implying a multi‑quarter upgrade/adoption ramp), modeled JiHu expenses of ~$15M (vs. $13M last year), and assumed stable quarter‑to‑quarter growth rates across Q2–Q4.Gitlab Financial Statement Overview
Summary
Strong multi-year revenue growth and very high gross margins, supported by a debt-free balance sheet and materially positive operating/free cash flow. The key constraint is still GAAP profitability, with net income and EBIT/EBITDA remaining negative and ROE still negative.Income Statement
Revenue growth has been strong over the multi-year period (from $152M in 2021 to $955M in 2026), indicating solid product demand and scaling. Gross margins are consistently very high (~87–90%), which is a clear strength. However, profitability remains a key weak point: net income is still negative in the latest annual period (about -5.9% net margin), and EBIT/EBITDA are also negative—showing the business is not yet operating-profit positive despite improved loss levels versus earlier years.62
Positive
Balance Sheet
The balance sheet is conservatively financed with essentially no debt (latest total debt at $0 and debt-to-equity at 0.0), which meaningfully reduces financial risk. Equity is positive and has expanded to ~$991M alongside asset growth (assets at ~$1.72B). The main weakness is that returns remain negative due to ongoing losses (latest return on equity around -5.6%), so shareholder value creation is still tied to achieving sustained profitability.74
Positive
Cash Flow
Cash generation has improved materially: the latest annual period shows strong positive operating cash flow (~$233M) and free cash flow (~$222M), a notable turnaround from negative free cash flow in 2025. Free cash flow has dipped year-over-year (down ~8.4%), which is a watch item, but overall cash conversion is strong given the company remains net-loss-making while producing meaningful free cash flow—supporting liquidity and runway.81
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 956.82M | 759.25M | 579.91M | 424.34M | 252.65M |
| Gross Profit | 836.96M | 674.11M | 520.20M | 372.66M | 222.67M |
| EBITDA | -104.08M | -131.73M | -157.86M | -205.82M | -127.75M |
| Net Income | -55.96M | -6.33M | -425.68M | -173.41M | -155.14M |
Balance Sheet | |||||
| Total Assets | 1.72B | 1.40B | 1.32B | 1.17B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 992.38M | 1.04B | 936.65M | 934.70M |
| Total Debt | 0.00 | 392.00K | 410.00K | 1.13M | 0.00 |
| Total Liabilities | 686.50M | 577.96M | 715.01M | 344.48M | 292.17M |
| Stockholders Equity | 990.67M | 775.91M | 559.77M | 771.02M | 774.87M |
Cash Flow | |||||
| Free Cash Flow | 222.03M | -67.74M | 33.44M | -83.48M | -53.35M |
| Operating Cash Flow | 232.86M | -63.97M | 35.04M | -77.41M | -49.81M |
| Investing Cash Flow | -267.29M | -30.49M | -86.24M | -543.96M | -27.45M |
| Financing Cash Flow | 34.81M | 32.62M | 45.23M | 35.76M | 674.74M |
Gitlab Technical Analysis
Negative
22.25
Price Trends
29.74
Negative
35.67
Negative
40.65
Negative
Market Momentum
-2.12
Negative
29.67
Positive
14.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Negative. The current price of 22.25 is below the 20-day moving average (MA) of 24.35, below the 50-day MA of 29.74, and below the 200-day MA of 40.65, indicating a bearish trend. The MACD of -2.12 indicates Negative momentum. The RSI at 29.67 is Positive, neither overbought nor oversold. The STOCH value of 14.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTLB.
Gitlab Risk Analysis
Gitlab disclosed 66 risk factors in its most recent earnings report. Gitlab reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gitlab Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.34B | 25.92 | 60.07% | 0.16% | 17.00% | 120.21% | |
67 Neutral | $3.75B | 63.93 | 9.88% | ― | 28.62% | 186.67% | |
63 Neutral | $5.52B | 224.68 | -9.44% | ― | 16.98% | -265.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $3.79B | -103.64 | -6.24% | ― | 27.35% | 18.18% | |
60 Neutral | $4.19B | -1,593.62 | -16.43% | ― | 24.26% | 55.58% | |
59 Neutral | $343.53M | -15.25 | -22.88% | ― | 13.09% | 32.34% |
* Technology Sector Average
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22.25
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Gitlab Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
GitLab Announces Strong Q4 Results and Share Buyback
Positive
Mar 3, 2026
On March 3, 2026, GitLab reported fourth-quarter fiscal 2026 revenue of $260.4 million, up 23% year-over-year, with a GAAP operating margin of -2% and non-GAAP operating margin of 21%, and operating cash flow of $45.8 million. For the full fiscal year ended January 31, 2026, revenue rose 26% to $955.2 million, non-GAAP operating margin improved to 17%, operating cash flow reached $232.9 million, and the company crossed $1 billion in ARR while expanding its base of large enterprise customers and maintaining a dollar-based net retention rate of 118%.
The board on March 2, 2026 authorized a $400 million share repurchase program for GitLab’s Class A common stock, to be funded from existing cash, investments and operating cash flow and executed via open market and other transactions at the company’s discretion. Management framed the buyback and the launch of its GitLab Duo Agent Platform and hybrid pricing as signals of confidence in long-term growth and profitability, reinforcing GitLab’s competitive position in the DevSecOps market and its commitment to delivering shareholder value.
The most recent analyst rating on (GTLB) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
GitLab Reaffirms Fiscal 2026 Outlook Amid Leadership Change
Positive
Jan 12, 2026
On January 9, 2026, GitLab Inc. appointed Sivaprasad Padisetty as its new Chief Technology Officer, with the role effective on or about January 15, 2026. Padisetty, 57, brings extensive experience from senior technology leadership roles at New Relic, Amazon and Microsoft, and his appointment follows standard governance practices with no disclosed related-party arrangements. Separately, on January 12, 2026, GitLab reaffirmed its previously issued guidance for the fourth quarter and fiscal year 2026, signaling continuity in its financial outlook and operational plans despite the leadership transition.
The most recent analyst rating on (GTLB) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Gitlab stock, see the GTLB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.